Senator Cynthia Lummis is pushing a simple but powerful idea: if a crypto company fails, your digital assets should still be yours. The Digital Asset Market Clarity Act of 2025, which she’s championing, would make that the law rather than a hope.
Those collapses turned user deposits into creditor claims, leaving retail investors standing in line behind corporate debts. The Clarity Act is designed to make sure that never happens again.
What the Clarity Act actually does
At its core, the bill, formally designated H.R. 3633, would mandate that digital assets held by a broker or exchange are treated as the customer’s property in bankruptcy proceedings. Not the company’s assets. Not part of the general estate that gets carved up by lawyers. Yours.
Lummis has framed the legislation around three pillars: regulatory certainty for developers, protection for investors, and market integrity. The property rights provision addresses the second pillar directly, but the bill reaches considerably further than just bankruptcy protection.
